Warmer weather and increased overheads contributed to Bradford-based Stylo making a loss of £7 million, with sales down by nearly two per cent on last year.

Bosses at the footwear retailer said that an unseasonably mild winter, combined with new anti-dumping duties and a sluggish retail market contributed to the company's disappointing performance.

In the 53-week period till February 3 the firm, based in Apperley Bridge, Bradford, endured a pre-tax loss of £7 million compared with £2.4 million the year before.

Michael Ziff, executive chairman at Stylo, said: "The results are poor and have been unseasonably affected by mild weather in Autumn and Winter restricting our ability to sell boots, the imposition of anti-dumping duty by the European Commission, increases in rents, business rates, minimum wage and power bills, and the sluggish retail environment."

Stylo ownS and operate the high street chains of Barratts, PriceLess, Shellys and Shutopia. The firm also trades from concessions in 194 Dorothy Perkins stores.

A number of the less profitable stores have been earmarked for disposal but Stylo continued to open new stores during the year as it sought to adapt to localised retail trends.

The poor results resulted in a basic loss per share of 14.98 pence while net-debt increased from £23.3 million last year to £30.9 million.

Mr Ziff said that the shoe market remained "exceptionally difficult" and that the Stylo board had conducted a review of the group's activities in Autumn of last year.

This review has led to a strategic recovery plan designed to improve the company's fortunes over the next few years.

However Mr Ziff declined to make any comment on how he viewed the business'S prospects for the forthcoming financial year.

He said: "Whilst we continue to operate in a low growth, very competitive retail sector, the board have initiated a strategic recovery programme which includes the disposal of unprofitable shops, substantial capital investment in our retail portfolio and computer systems and an emphasis on new sources of supply.

"We remain confident that these changes will deliver improved results over the course of the next few years."

Stylo employs around 5,000 people across the UK, including 350 at its Apperley Bridge headquarters.